Coinsquare Capital Markets Ltd. (“Bitbuy”) is offering crypto contracts to purchase and sell Lido DAO (LDO) in reliance on a prospectus exemption granted by the Canadian Securities Administrators (CSA) in the amended and restated exemptive relief decision dated October 11, 2024. The statutory rights of action for damages and the right of rescission in section 130.1 of the Securities Act (Ontario) and similar legislation in the other CSA jurisdictions do not apply in respect of a misrepresentation in this statement to the extent that a crypto contract is distributed under the above-noted prospectus relief.

No securities regulatory authority in Canada or any other jurisdiction has expressed an opinion about any of the crypto assets (or crypto contracts) that are available through Coinsquare Capital Markets Ltd (CCML)’s platform, including an opinion that the crypto assets are not themselves securities and/or derivatives.

Coinsquare Capital Markets Ltd (CCML) has compiled the information contained in this Crypto Asset Statement to the best of its ability based on publicly available information.

LDO is the governance token of Lido DAO. Lido DAO is a liquid staking protocol which works on the Ethereum blockchain.It enables users to stake their ETH to support the Ethereum network’s consensus mechanism. Lido DAO allows these assets to remain liquid by issuing stETH. The purpose of the Lido protocol and stETH is to allow those who have staked their ETH to retain liquidity, enabling them to utilize their assets in the decentralized finance ecosystem without needing to wait for the withdrawal unbonding period.

As with all assets, investing in Lido DAO is not without some general risks. Many of these risks are identified and explained in our Risk Statement. In addition to the general risks, we outline some risks that are specific to Lido DAO below. While we make an effort to identify every source of risk, we encourage you to do your own research and ensure you are comfortable investing in Lido DAO.

When the initial supply of LDO tokens was issued, 22.18% of the entire supply was distributed to early investors and an additional 20% of the supply was distributed to founding developers.1 Investors should consider this distribution and the potential impact that this concentration of tokens could have when evaluating LDO.

As LDO is an ERC-20 token on the Ethereum network, it is highly dependent on the continued stability of that network. Additionally, the Lido protocol’s main function is providing liquidity for ETH that is staked on the Ethereum network. Following the sunset of operations on Polygon and Solana in late 2024 and early 2025, the protocol’s operations are now almost exclusively tied to Ethereum. Any fundamental issues in the Ethereum network or its consensus layer (formerly referred to as the Beacon Chain) may impact LDO’s smart contract, token value, and the Lido protocol itself. Investors should consider this concentrated dependency when evaluating Lido DAO.